BC Business
Resources | BCBusinessThe Canadian Malartic gold mine in Quebec is Osisko’s prize project
Goldcorp. Inc.’s hostile takeover bid was thwarted today when Osisko Mining Corp. of Montreal announced its board of directors has approved a competing joint bid from Yamana Gold Inc. and Agnico Eagle Mines Ltd., both of Toronto. Osisko values the Yamana-Agnico Eagle bid at $8.15 a share, or a total of $3.9 billion. The agreement remains subject to approval of Sisko shareholders. Vancouver-based Goldcorp launched its hostile bid on January 13, offering cash and shares valuing Osisko at $5.95 a share. At the time Osisko shares were trading at $5.17. Goldcorp remained steadfast in its valuation until April 10, when it raised its bid to $7.65 a share. Osisko urged shareholders to resist Goldcorp’s offer, and on April 2 announced a complex agreement that would see Yamana Gold pay $929.6 million in cash and shares for a 50-per-cent stake in all Osisko’s mining and exploration assets, while a pair of pension funds would provide $550 million in cash. At the time Osisko said the agreement valued Osisko shares at $7.60. That April 2 offer was supplanted by today’s announcement of the joint offer from Yamana and Agnico Eagle. Osisko shares closed at $7.94, up 7 per cent, on April 16, the day Osisko announced the Yamana-Agnico Eagle agreement.